Shares of Brightpoint, Inc. (NASDAQ:CELL) gapped up on Thursday following analyst at Citigroup upgraded the stock’s rating to a “Buy” from a “Hold”. The company further boosted the price target by $2.50 to $13, which represents a 36.41% premium from its closing price on Wednesday.
The firm stated that Brightpoint Inc. could be benefited on Justice Department’s suit to stop AT&T Inc. from buying T-Mobile USA, although the final decision is yet to be made, but they believe there is low probability of reaching the deal.
The firm projects the company to earn $1.02 a share in FY2011 and $1.37 a share in FY 2012.
The stock is trading higher by 70 cents or 7.35% to $10.23, cooled off from day’s high of $10.54. Volume is very unusual with more than 806K shares have already traded hand by the morning session, compare to its 30-day average volume of 827K shares.
Shares of CELL are trading well above its 50-Day Moving Average and 200-Day Moving Average of $8.50 and $9.56 respectively. The company had total outstanding shares of 68.19 million, of which 62.54 million shares were floating.
So far this year, the stock has climbed over 14%, while it is up over 56% over the past one year.
Brightpoint, Inc. provides supply chain solutions to the wireless technology industry. The Company provides customized logistic services, including procurement, inventory management, software loading, kitting and customized packaging, fulfillment, credit services, receivables management, call center services, activation services, Website hosting, e-fulfillment solutions, repair and remanufacture services, reverse logistics, transportation management and other services within the global wireless industry.
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